RCCI Concerned Over 16% Sales Tax on Rent, Coercive Enforcement of Minimum Wages Law in Punjab

RAWALPINDI ( WNAM REPORT ): The Rawalpindi Chamber of Commerce and Industry (RCCI) has expressed strong reservations over recent policy measures announced by the Punjab government, including the imposition of a 16% sales tax on commercial property rent and the introduction of arrest powers for non-compliance with the newly mandated minimum wage.
RCCI President Usman Shaukat, in an official statement, criticized the Punjab Revenue Authority (PRA) for imposing a 16% General Sales Tax (GST) on the rent of commercial properties. “This new tax regime will significantly raise the cost of doing business for tenants, particularly retailers, across Punjab,” he said. “It will discourage investment, push legitimate businesses into the informal sector, and further strain an already struggling retail and real estate market.”
Shaukat added that the new tax would exacerbate the ongoing slowdown in the property and retail sectors, both of which are still reeling from post-pandemic economic challenges. “Such measures are counterproductive and will undermine business confidence in the province.”
In addition, the RCCI president voiced strong opposition to a clause in the recently passed Punjab budget that allows for the arrest of business owners failing to implement the new minimum wage of Rs. 40,000. “This coercive approach is deeply concerning and must be withdrawn immediately,” he said. “It opens the door to potential misuse by enforcement authorities and will only lead to harassment of legitimate businesses.”
While acknowledging the importance of fair wages, Shaukat emphasized the need for economic policymaking to be grounded in current market realities. “With national inflation now at a historic low of 6%, the rationale behind such a steep wage hike is questionable. A more balanced and consultative approach is needed to ensure economic growth, job creation, and industrial sustainability.”
The RCCI called on the Punjab government to review both measures and engage in meaningful dialogue with the business community to ensure that policies promote — rather than hinder — economic development.